Synagie IPO at 27 cents in 2018, it was loss making with a revenue of 12.3 million.  Its IPO price was priced at 5.75 times of Sales based on 2017 pro forma results.

Its latest results revenue of over $38 million, net profti of over $4 million.    Why not priced it on Sales as when it IPO after 3 years of operations  and generating cashflow of $7.8 million, close to IPO and Debt Free.

When it IPO it compares itself to other ecommerce co - priced it on the p.e of the profitable co.

Business Time article (extract)

E-commerce startup Synagie prices IPO at S$0.27 to raise net proceeds of S$9.8m

MON, JUL 30, 2018 - 5:06 PM

Revenue in 2017 jumped to S$8 million from S$3.7 million in 2016, as it added 77 new brand partners bringing the total to more than 250.

E-commerce revenue was S$7.2 million. Synagie sells goods on an outright purchase basis as well as on consignment. Last year, roughly 28 per cent of sales were done on a consignment basis, where margins are lower.

He said: &ldquo In hindsight we made a mistake in 2017, we were inclined on a cashflow basis to push for more consignment.

But certain brands that we already have three years of track record, we know how much they sell a year, we know how much they' re growing, then the key decision is we should be optimising the margins and not go for a stockless model.&rdquo

E-logistics revenue was S$817,000 last year. Synagie offers on-demand warehousing and last mile delivery services by outsourcing the work to Ceva Logistics, SF Express and SimplyPost.

The products that Synagie markets are targeted for sale in Singapore and Malaysia. Singapore accounted for 99.9 per cent of e-commerce and e-logistics revenues last year, though Synagie has since set up operations in Malaysia at the end of last year.

On a pro forma basis, Synagie made a net loss of S$2.3 million, on revenue of S$12.3 million, after accounting for the new insurtech business acquired in April.

In April, Synagie acquired 1CARE Global for a cash consideration of S$3.3 million.

Insurtech for Synagie is basically an extended warranty business that Mr Lee hopes will help Synagie move into the electronics segment. Oppo is one new brand partner that came on board this year.

Synagie started out focusing on baby products, since baby products have the highest e-commerce penetration. It later branched out into the body and beauty segments.

At S$0.27 a share, Synagie is priced at 5.75 times sales based on the group&rsquo s pro forma 2017 results.

Mr Lee likens Synagie&rsquo s business to Baozun in China, albeit on a much smaller scale. Synagie&rsquo s rivals include aCommerce, Anchanto, DKSH, SCI Ecommerce, Singpost eCommerce, Y Ventures, Shopify and Shopmatic, according to Frost & Sullivan. Y Ventures was the first e-commerce startup to list here last year.

In the insurtech space, Synagie said its rivals include The Warranty Group and Brightstar Corp.

The IPO proceeds will be used for business expansion and working capital, Synagie said in its prospectus registered on Monday. This will include looking at how blockchain technology can be used to issue contracts and authenticate payments, and building up an invoice factoring service for small and medium-sized enterprises (SMEs).

Mr Lee said: &ldquo We are launching our SME acquisition plan very soon. The reason why we were originally focused on MNCs (multinationals) is only because they sell faster, their brands are more well-known.&rdquo

Unquote

SYNAGIE Corporation has posted its first net profit since its initial public offering in August 2018 as a result of a surge in e-commerce activity during the Covid-19 pandemic. The company was S$4.1 million in the black for the half-year ended June 30, 2020, reversing from a loss of S$3.7 million a year ago.

Revenue increased 325.6 per cent to S$38.3 million, while gross profit jumped 411.9 per cent to S$12.9 million.

A surge in demand for products related to Covid-19 and higher e-commerce activity due to stay-home measures caused revenue from the e-commerce segment to rise 435.3 per cent.

The insurtech segment posted a 55 per cent, or S$1 million, fall in revenue. The uncertainty over the pandemic led to slow contract renewals.

Synagie' s net profit comes as the group is proposing to  dispose of its e-commerce business  for about S$61.7 million to focus on its insurtech business. The sale, which involves the  entire e-commerce, e-commerce enabler and logistics business, will be to a consortium of investors that include Synagie' s  three founders, Alibaba Singapore and a fund managed by  venture capital firm Gobi Partners Group.

The group' s gross profit margin was higher at 33.7 per cent for the half year, compared with 28 per cent a year ago. This was mainly due to an  improved product mix in the e-commerce segment. Synagie had also achieved its revenue targets, allowing it to earn the target incentives.

Earnings per share was 1.36 Singapore cents, compared with a loss per share of 1.43 cents a year ago.

The counter closed at 19.3 Singapore cents on Thursday, up 0.1 cent or 0.52 per cent.